Morning Highlights

There Are No Quick Picks For Today…

The STI gapped down 1.6% to open at 2607.42 at the start of the trading session. Index is trading lower after declines on Wall Street sapped investors’ appetite for risk. 2700 points has once again turned into a resistance level. Market will require heavy volume traded when it attempt to breakthrough and sustain above the 2700 level. As of now, the 2600 support is pretty strong but then again, it is too early to conclude. We will need further observation for clearer market direction.

On the other hand, Australian market is hitting 3-week lows and Japanese shares have also suffered broad losses in early Thursday trading in Tokyo, with oil and auto-maker shares among the bigger losers .  NEC Electronics is also slumping on its downbeat earnings report but shares of Japan Airlines Corp is up 3.6% after the Nikkei reported that Japan's government is considering legislation to guarantee loans for the ailing carrier.

New Zealand Banking down 1.7% after reporting an 11% drop in fiscal-year profit. Hang Seng Index falls 2.2% in opening moves.

Spot gold was at $1,028.70 a troy ounce, up $1.00 from the New York close.

Corporate Announcement

Noble Group completed a record US$2.4bn syndicated corporate loan – the largest in Asia Pacific. Proceeds from the loan will be for general corporate purposes.

Thur 29 Oct 09: NOL 3QFY09

Fri 30 Oct 09: UOB 3QFY09

Dividend Paid Dates

Fri 30 Oct 09: SGX (net final dividend per share of S$0.155)

News Updates

  • The Fed, which has cut interest rates to near zero in an effort to pull the economy out of its worst recession since the 1930s, will begin to hike rates in mid-2010, said Jeffrey Kleintop, chief market strategist at LPL Financial. 

  • U.S. new-home sales decline for first time in six months‏

  • U.S. monthly durable-goods orders register 1% rise‏

  • Japan industrial output rose for the seventh consecutive month in September, the longest streak of gains in more than 12 years, highlighting that the export dependent economy continued to emerge from its worst recession in decades on the back of overseas demand for Japanese cars, electronics and other-high end products.

Here’s Our Mid Term Holding Opportunities for property shares.

  1. Allgreen Properties – Buy at 1.21, Stop Loss at 1.04
  2. City Development – Buy at 10.50, Stop Loss at 9.55
  3. Wing Tai Holdings – Buy at 1.75, Stop Loss at 1.55
  4. Ezra – Buy at 2.08, Stop Loss at 1.66
  5. Lookout for Keppel Corp

Afternoon Highlights

Market managed to rebound off morning’s low of 2603.20 and holding up above the support at 2630.20. However, market is still in choppy state.

The Singapore Mercantile Exchange plans to trade carbon products and could launch by the second quarter of 2010, CEO Thomas McMahon said on Thursday.

Traditional Chinese medicine company Eu Yan Sang International on Thursday said that Q1 2010 net profit rose 11% year-on-year to $3.6 million. Profit for the same three months a year ago was $3.3 million. (Business Times)

Japan Airlines Corp turns to government for 'huge' bail-out: (Reuters)

Japan Airlines Corp said it would apply for assistance from a state-backed corporate turnaround body, setting the stage for a large injection of public funds into the troubled airline.

The government has been scrambling to secure financing and map out a restructuring plan for JAL, which is headed for its fourth annual loss in five years, weighed down by $15 billion in debt and crippling legacy costs.

"JAL will need huge money, huge public money, through both capital and loans," said Shinjiro Takagi, the head of a transport ministry taskforce trying to rescue JAL. "We have decided the ETIC will be suitable for the public money."

The ETIC, which can draw on up to 1.6 trillion yen ($17.8 billion) in state-guaranteed funding, will decide on whether it can help JAL after studying its assets and its restructuring plan -- a process that could take a few months.

In summary,

Market dropped 16.67 points in total, closing at 2632.31, with volume of 1.7301 billion traded today.

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Our market sentiment remains that of neutral. High chance that the 2600 points serves as a good support level. However, we advise to wait till clearer signs of market trend is formed before resuming our trades.

Quote of the Day

“Only when the tide goes out do you discover who's been swimming naked.” - Warren Buffett